07 Apr

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Steps to Liquidating Your Business Equipment

Steps to liquidating your business equipment

When it comes to a business liquidation closing, many things need to be considered beforehand. After all, a business liquidation closing involves many steps that need to be taken for everything to end on smooth terms.

Moreover, you will need to value every item that you wish to liquidate, which will likely include your office’s fixtures as well as your equipment. This is because you will want to get the best return on your investment before you finally close up shop for good. Here, we will focus on some steps that you may want to take before your business liquidation closing transpires.

Get in Touch With a Lawyer and an Accountant

The first thing that we would suggest before you liquidate your business equipment is to get in touch with a trusted and reputable lawyer and accountant in the community. For instance, if you are presently having some issues with your creditors, then you will need to get their permission before you begin selling off your business equipment.

The good news is that your lawyer can help serve as a mediator to help you end things amicably with your creditors, while your accountant may help in the negotiations, as far as the pricing of goods is concerned.

Formulate an Asset Inventory

Next, you should take high-quality images of all of your business equipment, while also writing a short description for each item. You should record the serial number of each item, as keeping a detailed record of each piece of equipment will pay great dividends when tax season comes around. As well, you may be required to explain your company’s liquidation to the CRA.

Determine Which Goods You can Liquidate

Along with formulating an asset inventory, you will need to identify which pieces can be liquidated, as well as perform a thorough evaluation of each item. For example, goods that you owe more cash on may need to be kept (and paid off in full) or repossessed in most instances. Moreover, any equipment that you have leased must be sent back to their original owner, so they cannot be sold either.

Value Each Piece Individually

Next, you will need to value every item individually. In other words, each piece of office equipment has its own unique value, and the same applies to the pieces of furniture in your possession. Here, you’ll need to spend some time researching the value of each piece. The best way to do so is to check how much they sell for—both brand new and pre-owned—on classified websites, such as Craigslist, Kijiji, and eBay.

Or, if you need additional aid and wish to take an alternative route, you may need to consult an appraiser so that they can help you value each item with greater accuracy and confidence.

Return as many Items as Possible to Your Suppliers

Also, if possible, try and return as many items as you can to your suppliers. Most suppliers will issue a refund after they have received their inventory back. However, not all suppliers work the same way, so you will need to go over the return policy of each supplier carefully.

That is, some suppliers may only offer a partial refund for items that are returned, or may offer store credit instead of cash back for their goods. Hence, if your supplier will only offer store credit or a partial refund for returned items, then your best option may be to try and sell the items for as much as possible on the free market.

Sell as many Corporate Assets as You Can

On that note, you should try and sell as many of your corporate assets as possible to recoup as much money as you can. To do so, you can have an in-person sale, or you can opt to sell off inventory online on Amazon, eBay, or other such auction sites. Yet another avenue you can take is to contact other companies that may be interested in buying some of your merchandise.

It would help if you advertised that your office equipment would be sold at a significant discount to entice as many buyers as possible. This is also an absolute must if you need to liquidate goods as soon as possible to pay back creditors before a designated deadline, so offering deep discounts may be your only option in some cases.

Hire a Liquidation Company

If all else fails, you may need to consider partnering with a liquidation company to help you in your endeavours. Liquidation companies tend to have years, if not decades, of experience in liquidating all sorts of business goods and items for small, medium, and big businesses from every sector and industry imaginable.

Hence, if you need help selling off your inventory or are simply not comfortable with doing all of the work yourself, then your best bet may be to use the services of a reputable liquidator in the area. In fact, they will come directly to your office, evaluate all of your corporate assets, and handle all of the selling for you. All they will ask in return is a fraction of the profits that are made in exchange for their liquidation services.

Michaels Global Trading

If you would like to learn more about business liquidation closing and all of the steps that are involved in the process, then please visit our website. Michaels Global Trading (MGT) specializes in industrial facility equipment and commercial equipment liquidation services and is fully licensed and bonded for peace of mind.

We also assure a high level of transparency through every step of the liquidation process and ensure timely, concise, and clear communication without exception. To learn more about our business liquidation closing services, please call us at 888-471-5066 for a free, no-obligation quote and consultation.

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Marlon McPherson is the CEO of Michaels Global Trading, certified appraiser and liquidator in Toronto, Ontario. With over 7 years of experience in the industry, he has worked with companies such as Druxy’s Deli, Blackberry and Thomson Reuters. Marlon is very involved in the day to day operations of MGT from marketing messages to sales meetings. When not working Marlon enjoys spending his time wine tasting, travelling and cooking at home with his family.

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